Succession planning is a critical process for any organisation that wants to ensure its long-term success. It involves identifying and developing individuals who have the potential to move into key leadership positions within the company.
A commitment to the training and development of existing employees is an essential part of this process as well as a focus on promoting internal candidates to senior positions wherever possible.
Retaining Top Talent
One of the most significant benefits of building succession plans and promoting internal candidates to vacant roles is the ability to retain top talent. When employees see the investment in training and development alongside a clear path for career advancement within the company, they are more likely to stay with the organisation.
In addition, embedding a culture of promoting internally is likely to significantly reduce employee turnover and ensure that the company retains its most valuable employees.
Developing Employee Skills
A strong commitment to succession planning and internal promotion will also result in a significant increase in multi-skilling of existing employees. By investing in a high quality and well-structured training and developing programme, employees will have the opportunity to learn new skills and take on new responsibilities.
By helping employees grow and develop professionally, an organisation will see significant benefits from an increase in employee engagement and motivation, which in turn, is likely to result in higher productivity and performance levels.
Furthermore, investing heavily in the development of employees will make them feel more valued, creating a positive work environment and a strong company culture.
Reducing Recruitment Costs and Risk
Another benefit of training and developing existing employees and promoting internally is the ability to significantly reduce recruitment costs. When an organisation promotes from within, it does not have to spend as much time and money recruiting candidates from outside the organization. This keeps recruitment costs to a minimum and ensures that the organisation has a steady supply of qualified candidates for key positions.
Furthermore, an external candidate carries far greater risk in terms of likelihood of aligning to the organisational culture. They are likely to require a longer lead time to embed themselves within a completely new organisation, getting to know the people, structure, culture and politics, whereas an internal candidate will already be familiar and comfortable with all of these factors.
Ensuring Business Continuity
Finally, building succession plans are essential for ensuring business continuity. When key leaders retire or leave the company, it is vital to have a plan in place to ensure that their roles can be filled quickly and effectively to minimise the impact of business disruption.
By developing internal candidates, the organisation can ensure that it has a pool of qualified candidates ready to step into key leadership positions at short notice.
Summary
Building succession plans and promoting internal candidates to vacant roles is essential for the long-term success of any organisation. It can help retain top talent, develop employee skills, reduce recruitment costs, foster a strong company culture, and ensure business continuity, minimising the risks of business disruption.
By investing in the development of its employees and providing them with opportunities for career advancement, the organisation will create a positive work environment and a strong culture that will help it succeed in a competitive business environment.
Get in touch
We are experts in the Fintech sector and have helped businesses scale, obliterate their cost per hire, and improve their brand reputation. Get in touch today to speak to one our experts for bespoke advice on how to react to market conditions.